Monday’s Top Stocks
Well, it was almost a day marked by across-the-board ‘profit-taking’–until
the final thirty-minutes of trade. By the closing bell however, the broader
averages were once again mixed, as our bovine friends finished between a loss
of .65% to a fractional gain of .22% for the Nasdaq. Considering the weakness
in the semiconductor sector (SMH), this might be considered even more triumphant
by some…probably the same people responsible for getting that index in the
green at the end of the day. The painting of the tape did keep the multi-week
rally statistics alive in both the S&P500, but did fall shy in the Nasdaq Composite. I will
acknowledge that it’s got that going for it (for some people at least)–but
personally speaking, I’m not quite seeing the same kind of bull as the ‘smart
money.’
Congrats to all of our ‘market artists’ out there, cuz it was a beautiful paint
job. Other than the semiconductors though, which looks to be the only market
sector worthy of official pullback status, things still look shaky to this ‘cautious
bull.’ More individual names, once again, were being razed–instead of grazed,
although admittedly a little bit less so than in recent days. But with recent
flavors of the week like NVEC, NSCN, HTCH, and MERQ looking a bit less tasty,
and just plain ol’ retarded type action (for lack of a better word) in the likes
of stocks like HYSL and POWI–I seriously feel fine ‘steering clear’ of a very
funny looking bull. Until, the stars align again, or the ever elusive pullback
rears its ugly head–we’ll just continue to focus on the one thing that usually
seems to make more and more ‘cents’ every day, namely disciplined, consistent
daytrading tactics.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VXO ( $VXO | Quote | Chart | News | PowerRating) |
14.87 | down .14 | cvr 6 sell | 5% below | not at extreme |
| VXN ( $VXN | Quote | Chart | News | PowerRating) |
21.27 | down .47 | none | 3% below | not at extreme |
Hottest Sectors : Biotech
(
BBH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors :Â Semiconductor
(
SMH |
Quote |
Chart |
News |
PowerRating) and Gold/Silver (XAU)
Monday’s stocks to watch:
Technical Strength Top of Range.
Stocks are scanned from TM’s Proprietary and Technology 10 Momentum lists on
the Indicators page, as well as being hand selected, based on the most recent
technical action. This may include some or all of the following: abnormal
volume, price patterns, as well as bullish action off of technical price
supports or clearance of technical resistance in that day’s session.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| MGI Pharma | ( MOGN | Quote | Chart | News | PowerRating) |
48.04 | top of range consolidation closing above daily chart consolidation pattern highs on increased, above-average volume |
536 | 1,527 |
| SeaChange | ( SEAC | Quote | Chart | News | PowerRating) |
18.20 | Engulfing bullish bar off technical pullback, closing top 1/2 of range on increased, above-average volume |
467 |
1,559 |
Technical Weakness Bottom of Range.
Stocks are scanned from TM’s Implosion and Technology Implosion Lists on the
Indicators page, as well as being hand selected, based on the most recent
technical action. This may include some or all of the following: abnormal
volume, price patterns, as well as bearish technical action at key support,
or resistance levels based on closing prices.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| NVIDIA | ( NVDA | Quote | Chart | News | PowerRating) |
23.09 | Follow thru day below 123 daily reversal pattern, closing bottom of range |
5,747 | 4,020 |
| PMC Sierra | ( PMCS | Quote | Chart | News | PowerRating) |
22.52 | Bottom of range consolidation, breaking below gap consolidation supports daily |
6,653 | 6,391 |
Stock Reversal Setups Closing Basis.
Stocks that are setting up on a closing basis as potential long or short reversal pattern
candidates. Candidates listed may have triggered on a closing basis, or close
to triggering ( my general rule is to list the pattern setup if it is within
+/-.15 of trigger price). Patterns include basing patterns (Slim Jims, 1,2,3s,
Double bottoms) consolidations, and triangle reversals. Background technical
supports in the form of Fibonacci levels, EMAs (DEMA=daily ema), RS, and former
price action are used in the decision making process.
Long Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| NA | NA | NA | NA | NA | NA |
Short Reversals Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume 000’s | Today’s Volume |
| Hyperion Solutions | ( HYSL | Quote | Chart | News | PowerRating) |
36.20 | Daily double top on gap, to close bottom of range on volume surge |
669 | 7,498 |
Institutional Favorites and Institutional Laggards.
The following stocks are selected from the Nasdaq, S&P 500 & 600 Indices,
and HOLDRs. These are normally heavily traded, liquid issues that are exhibiting
relative strength or weakness, patterns (consolidations or Slim Jims) , or
last hour volume surges, indicative of follow through in the very near term.
Institutional Favorites
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Veritas | ( VRTS | Quote | Chart | News | PowerRating) |
38.71 | 5,459 | 5,187 |
| Adobe | ( ADBE | Quote | Chart | News | PowerRating) |
38.04 | 3,530 | 3,985 |
| Maxim Integrated | ( MXIM | Quote | Chart | News | PowerRating) |
53.71 | 5,743 | 6,452 |
Institutional Laggards.
| Name | Symbol | Price | Average Volume 000’s | Today’s Volume |
| Juniper | ( JNPR | Quote | Chart | News | PowerRating) |
27.98 | 10,098 | 20,427 |
| Merck | ( MRK | Quote | Chart | News | PowerRating) |
45.78 | 10,384 | 7,321 |
Best of luck to everyone. Please use protective stops on all trades.